Steve Holdridge: And this is Steve. Just to add on that. From a go-to-market, it’s very simple. We believe the business case and value of what we have seen come out of generative AI will easily command a premium price in the market and companies will flock to it because of the savings and efficiencies they will get out of it.
Bhavin Shah: Very helpful. Just clarifying, will Autonomous Payroll be a separate SKU? Will that be included for all kind of Dayforce customers? And my second question is just in terms of just Dayforce recurring customer, saw a pretty nice uptick this quarter with accelerating growth from the last few quarters. Can you just talk about the drivers of that?
David Ossip: Well, the drivers of that, obviously, is the widening of the actual product suite and the back at 50% of the customers I will take in the actual full suite. In terms of packaging and bundling for next year, we are still going through that exercise at the moment. Joe, anything that you would add in terms of Autonomous Payroll and ability to charge for it?
Joe Korngiebel: Yes. I think an important point on the previous question that was asked as well is we are delivering and really transforming payroll. We are delivering modern payroll. And both Autonomous Payroll and what we are doing with wallet are the key components of that. And while we are finalizing the package you can see our offering very different than what the competitive landscape is where people are still clinging to printed checks and things. We have a new revenue driver and wallet is a great example. We have a new really revenue driver in global payroll growth and being able to be a global payroll provider to pay your people no matter where they are in the world in this new boundless workforce. And so we really take Autonomous Payroll.
What we are doing with wallet and what we are doing with core global growth is what companies need for modern payroll, and we are leading the charge with really and disrupting ourselves in many ways by providing this next generation of payroll to really help companies and the changing workforce and the changing nature of business.
Bhavin Shah: Thanks for taking my questions and congrats on the strong quarter.
Matt Wells: Okay. Great. Mark Murphy with JPMorgan.
Mark Murphy: Thank you so much and congratulations on a very differentiated performance. David, you are currently onboarding, I believe some of the largest customers that you have ever landed in terms of seat counts. Can you comment on how the system scalability is performing under that pretty heavy transactional load? And just how you feel about that massive onboarding process here into Q4 and beyond?
David Ossip: Yes. Thanks Mark. I am going to ask Joe to speak about the hyperscale payroll project that we have been doing over the last probably about 18 months. But at a high level, it’s going very well. Joe, do you want to just talk a little bit about hyperscale containers versus servers?
Joe Korngiebel: Yes, for us, to grow up market and to really push was one of the big reasons that I came here 3 years ago, and we have been really fundamentally changing our architecture. One, we started with data. Data is essential in terms of getting it right and having a single architecture to that. The second is horizontal scale, just moving in a vertical scale, the world has limits and has shortcomings. And so as we have gone live, we have taken our payroll capabilities, and I mentioned continuous pay, we are doing that as a payroll engine that can run horizontally. And so we can just – with our partnership with Microsoft and what we are doing with the Azure cloud, we can just spin up new containers and be able to run larger and larger customers.
And that’s being paid off by exactly what you said, Mark, new customers going live. We are running them into what we refer to as our payroll engine as a service, running it horizontally at scale. And then scale also equals a complete change in user experience to do proper hyperscale, you need to change user experience as well. And over the last several years, we have been working on a complete new user experience that we are driving in to help customers with the scale and the user experience side as well. So, both of those factors, both the horizontal scale as well as the overall user experience have been in the works have been rolled out for the last several years, and now we are seeing it light up with these large-scale customers are going well.
Mark Murphy: Yes. Thank you, Joe. That’s very helpful. I appreciate that. David, I wanted to ask as a quick follow-up. Just given Q4 is your largest quarter for sales and bookings activity, it sounds like that’s been progressing very well. Can you comment on – you did comment on the pipeline, but could you comment on the business confidence you are seeing out there. For instance, our inflation and higher cost of capital affecting the psychology out there among prospects, or the new bookings patterns at all, or are you seeing ongoing health into spending mood?
David Ossip: Mark, we have always taken the approach of a very strong return on investment to our customers. And today, when you are talking about a 5% Fed rate and money is no longer free, the time to return is very important. We have always led the industry in terms of how quickly we can deliver a return to our customers. It’s making us much more competitive against the ERPs were not any are we very strong on the ROI side, but the customers, by the time they go live, which as you know is quite quick with us, are fully proficient with the actual system right away, which allows them to get a stronger return. The second part about it as well, as we broaden our platform, there is a considerable saving to new customers to buy additional modules at the time of purchase because they don’t have to pay for another database, another hosting environment and the integration that goes between systems.
So, the system simplification ties into the very strong ROI. In terms of pipeline, as I mentioned, at a record level, but I also have to point out that Sam is up to speed and really is tremendous. And so that gives us a lot of confidence in the remainder of the year. And as I have said earlier, we are very focused, as you know, on the 2025 target of the $2 billion, 88% gross margin, 30% adjusted EBITDA and I think we will deliver on that.
Mark Murphy: Thank you very much. Congrats again.
Matt Wells: Our next question comes from Dan Jester of BMO.
Dan Jester: Great. Thanks for taking my question. Maybe just two ones. So first, on the full suite purchases, great to see the continued momentum there. I think my understanding is that full suite doesn’t necessarily mean everything that Ceridian makes. And so if you look historically, has the propensity of the full suite buyers to come back to you and buy additional modules over time like analytics and the like. Is that higher than the customers that maybe only buy one or two things out of the start? And then my second question, David, you gave some updates earlier this year about using generative AI within the organization to drive efficiencies and margin. Any update in the learnings as you have expanded maybe some of those trials? Thank you.
